Whenever we hear about cryptocurrencies, we automatically focus on the tokens. There is BTC, ETH, SOL, and thousands of other tokens which are all popular. However, there is so much more to these coins than just the tokens. What comes before and after them is the network that actually powers the coin.
The Bitcoin network, for example, is comprised of computers which interact to validate transactions and keep the blockchain going. The mining process is an essential part of the consensus process of Bitcoin.
Ethereum operates using a different protocol. In this case, the network is capable of running the so-called smart contracts which are the programs stored on the blockchain. Ethereum uses a proof-of-stake consensus method where validators ensure the validation of the blocks and the state of the network.
Solana uses its own network which uses accounts for storing state information whereas the program contains logic which applications use. The transactions specify which accounts and instructions should be used.
So there is much more to the coin than just the coin itself.
That is the reason why analyzing the price alone of a crypto coin can overlook the processes under the surface. After all, the network is the one responsible for processing transactions, record-keeping, computing applications, and consensus among participants.
In simple terms, a coin is just one component of an extensive system. The Bitcoin network is built to facilitate a decentralized monetary system, while the Ethereum network is created to be the foundation for programmable applications and smart contracts. The Solana network focuses on transaction and program processing using its account-based system.
Of course, these networks are not mere technological constructs. The Ethereum network enables smart contracts and decentralized applications, while Solana explicitly mentions payments, stablecoins, markets, lending, and tokenization as sectors where developers can develop on its platform.
Perhaps that is the overlooked aspect of crypto coins when we keep mentioning them.
While the coin gets all the spotlight, it is the network that actually performs the functions.
